We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bank Nova Scot | LSE:BNV | London | Ordinary Share | CA0641491075 | COM NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
RNS No 9140e
BANK OF NOVA SCOTIA
26 May 1999
SCOTIABANK ACHIEVES DOUBLE-DIGIT INCREASES IN NET INCOME AND EARNINGS PER
SHARE
Toronto, May 26 - Scotiabank continued its record of consistent earnings
growth, achieving double-digit increases in both net income and earnings per
share this quarter.
- Net income was $384 million, up by $38 million or 11% from the second
quarter of last year, including:
- $147 million from Canadian retail and commercial banking, up from $145
million;
- $142 million from corporate banking, up from $92 million;
- $90 million from investment banking, up from $89 million;
- $82 million from international banking, up from $67 million;
- Earnings per share rose to $0.73 from $0.66, a 10% increase; (excluding
non-cash goodwill and intangibles, the cash earnings per share were $0.74,
up from $0.67);
- Return on equity was 15.7%, compared to 16.0%; (excluding non-cash goodwill
and intangibles, the cash return on equity was 16.7% versus 17.1%);
- Total capital ratio increased to 11.2%, Tier 1 capital ratio reached 7.8%.
- Total assets were $221 billion, up 5%.
"All of our main business lines contributed to the strong net income this
quarter," said Peter Godsoe, Scotiabank's Chairman and Chief Executive
Officer.
Continuing good performance in Canada
"Domestically, our retail and commercial banking area turned in another solid
quarter," Godsoe said. "In particular, historically low interest rates and
solid employment growth since mid-1998 contributed to a $3.7 billion increase
in residential mortgages, up 9% from the same quarter a year ago."
During the quarter, Scotiabank extended its leadership in retail lending
innovation with the introduction of the Scotia Total Equity Plan. By giving
homeowners an opportunity to combine up to five products into a single
borrowing program, the plan will help customers better manage both sides of
the household balance sheet. With the flexibility of a one-time application
process and an umbrella credit limit, the plan is expected to be very popular
with customers.
"Due to a successful investment campaign during the RRSP season, we also
continued to gain market share in personal deposits during the second
quarter," Godsoe said.
Strong quarter in corporate banking
"Net income from corporate banking was up 54% year-over-year, fuelled by
strong lending activity in the vibrant U.S. economy," Godsoe said. "This
recent performance builds on the momentum established in 1998, when
Scotiabank, competing against the largest banks in the world, ranked sixth
overall in U.S. syndicated financings."
International economies begin to recover
"Scotiabank's diversified international operations also turned in better
results than the same quarter a year ago, as a number of hard-hit Asian
economies which experienced setbacks in 1997 and 1998 began to stabilize and
recover," Godsoe said. Looking ahead, this economic recovery is expected to
broaden going into 2000, alongside a stronger global expansion.
Enhancing wealth management
Scotiabank continued to build its wealth management business during the
quarter, while completing the integration of National Trust's operations.
Through Scotiatrust, Montreal Trust and National Trust, Scotiabank now has one
of Canada's leading personal trust operations.
The Bank's leadership in personal trust complements the managed asset business
of ScotiaMcLeod, which has grown by 300 per cent during the past two years. To
keep this growth on a strong trajectory, ScotiaMcLeod introduced the Summit
Program during the quarter, a managed asset or "wrap" program geared toward
investors with portfolios valued at $500,000 or more. ScotiaMcLeod also offers
the Pinnacle Program for investors with portfolios over $50,000.
Electronic banking expands
Scotiabank continued to improve customer choice and convenience during the
quarter by adding new options to its electronic banking menu. Customers were
able to avoid the last-minute RRSP rush by buying investment products through
Scotia OnLine, and they can now also access their mortgage, personal loan and
U.S. dollar savings account balances online.
"Scotiabank is the only Canadian bank to offer our customers fully secure
banking on the Internet," Godsoe said. "We have experienced tremendous
growth in the number of registered users of Scotia OnLine -- up 355%
year-over-year -- a product of our continued investment in this area."
Providing community support
Scotiabank continued to play an important role in the communities in which we
operate. During the second quarter, the Bank donated $1.5 million to the
University of Western Ontario's Centre for Research on Violence Against Women
and Children. The Scotiabank donation, pledged over five years, will fund an
academic chair, an internship program for students conducting applied research
with local community agencies, two scholarships and a fund to provide grants
for anti-violence research projects in the community.
In addition, the Canadian National Institute for the Blind and Scotiabank
partnered in a television campaign to raise close to $1 million to provide
services for Canadians who are blind or visually impaired.
Financial results
-----------------
Highlights for the second quarter, compared with the preceding quarter
include:
- net income of $384 million, an increase of 4%;
- earnings per share of $0.73, up from $0.69;
- return on equity of 15.7 %, an improvement from 14.8%; and
- Tier 1 capital ratio reached 7.8%, a significant increase from 7.2%.
Net income for the six months ended April 30, 1999, rose by 11% to $752
million, up from $677 million in the same period a year ago. Year-to-date
earnings per share grew to $1.42 from $1.29. Return on equity was a strong
15.3%, down slightly from 15.6%.
Total revenues -- net interest income and other income -- rose to $1.9 billion
in the second quarter, an increase of 2% over the same quarter a year ago.
This increase would have been almost 6% if the substantially higher levels of
securities gains in the second quarter of last year are excluded.
Net interest income grew to $1.162 billion, a 7% increase over the $1.082
billion recorded in the same period a year ago. This was attributable to a
significant 25% increase in foreign currency net interest income, which
resulted from a combination of higher lending volumes in the United States,
Europe and the Caribbean, and an increase in the interest margin.
Domestically, net interest income declined 4% due to additional loan
securitizations which had the effect of reducing net interest income while
increasing other income. Excluding this effect, the underlying Canadian net
interest income was relatively unchanged, despite a reduction in the interest
margin.
Other income for the quarter was $750 million, a decline from $798 million in
the same period a year ago, due in part to the lower gains on the sale of
investment securities recorded this quarter. Growth in the remaining
components of other income was broadly based, led by increases in
securitization revenues and credit fees. Brokerage commissions and trading
revenues were also strong in the quarter, but below the exceptionally high
levels earned in the second quarter last year.
Non-interest expenses for the second quarter increased 4% from the same
quarter a year ago. Salaries expense, the Bank's largest expense category,
increased less than 2% year over year, partly due to lower performance-linked
compensation in investment banking.
The Bank's productivity ratio -- non-interest expenses as a percentage of
total revenues -- was 61.0% in the second quarter, versus 59.9% in the same
quarter a year ago. The Bank's year-to-date productivity ratio for the first
six months of the fiscal year was 59.7%, better than its target of 60%.
Scotiabank's productivity ratio remains among the best of the Canadian banks.
Credit quality remained stable, with net impaired loans as a percentage of
loans and acceptances at 0.2%, consistent with the preceding quarter. Net
impaired loans were $305 million as at April 30, 1999, versus $288 million
last quarter, with modest fluctuations among the business lines.
The forecast 1999 annual specific provision for credit losses is estimated at
$435 million, unchanged from the last quarter. The quarter's total provision
for credit losses was $109 million, one-quarter of the estimated annual
specific provision, versus $259 million in the preceding quarter, when $150
million was added to general provisions. As at April 30, 1999, general
provisions were $750 million.
Total assets were $221 billion as at April 30, 1999, a decline of $11 billion
or 5% from the preceding quarter, mainly due to the securitization of $7.4
billion of loans during the second quarter and the translation effect of a
stronger Canadian dollar. However, compared to a year ago, total assets rose
by 5% or $10 billion.
Loans and acceptances grew by 4% to $140.5 billion on a year-over-year basis.
During the second quarter, the Bank completed three loan securitizations,
including U.S. corporate loans, residential mortgages, and credit card
receivables. After adjusting for these securitizations and credit card
receivables securitized in the fourth quarter of last year, loans and
acceptances increased by 11% over last year. Much of this growth was generated
in residential mortgages, and in the corporate and commercial lending
portfolios in the United States, the Caribbean and Europe.
The Bank's securities portfolio was $32.1 billion, as at April 30, 1999, 10%
higher than a year ago. The surplus of market value over book value in the
Bank's investment securities portfolio was $591 million at quarter end, a
sharp improvement from $208 million in the preceding quarter, reflecting
higher unrealized gains in the Bank's equity securities portfolio and the
continued recovery in the value of emerging market securities.
Total deposits increased to $152.6 billion as at April 30, 1999, up 2% over
the previous year. Personal deposits experienced the greatest growth with a 5%
increase, reflecting in part the popularity of the Bank's deposit products,
such as stock-indexed and cashable GICs.
Common equity rose to $9.4 billion as at April 30, 1999, an increase of $155
million from the preceding quarter. The growth was primarily attributable to
earnings retention of $254 million, which was partially offset by a foreign
currency translation adjustment of $111 million, due to strengthening of the
Canadian dollar. This net increase in capital, coupled with a decline in
risk-adjusted assets, partially due to the loan securitizations, led to a
significant improvement in the Bank's Tier 1 capital ratio to 7.8%, from 7.2%
in the preceding quarter.
As at April 30, 1999, the total capital ratio rose to 11.2% from 10.6% at the
end of the prior quarter. Shortly after the quarter end, the Bank issued a
$350 million 15 year, 5.75% subordinated debenture which will further improve
the total capital ratio by 24 basis points.
"A quarterly dividend of 21 cents per common share was approved by the Board
of Directors at its May 26, 1999, meeting, payable on July 28, 1999, to
shareholders of record as of the close of business on July 6, 1999.
Performance Highlights Scotiabank
-------------------------------------------------------------------------
For the three months ended
-------------------------------------------------------------------------
April 30 January 31 April 30
(Unaudited) 1999 1999 1998
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net income (millions) $384 $368 $346
Earnings per share $0.73 $0.69 $0.66
Return on equity 15.7% 14.8% 16.0%
Return on assets 0.68% 0.62% 0.67%
Productivity ratio 61.0% 56.1% (1) 59.9%
-------------------------------------------------------------------------
(1) The productivity ratio was 58.3% when a one-time gain of $77 million
realized on the sale of shares acquired several years ago through a loan
restructuring is excluded.
For the six months ended
-------------------------------------------------------------------------
April 30 April 30
1999 1998
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net income ($ millions) $752 $677
Earnings per share ($) $1.42 $1.29
Return on equity 15.3% 15.6%
Return on assets 0.65% 0.66%
Productivity ratio 58.5% (2) 59.9%
-------------------------------------------------------------------------
(2) The productivity ratio was 59.7% when the one-time gain of $77 million in
Q1/99 mentioned above is excluded.
Interim Consolidated Statement of Income Scotiabank
-------------------------------------------------------------------------
-------------------------------------------------------------------------
For the three months For the six months
ended ended
(Unaudited) April January April April April
($ millions) 30 31 30 30 30
1999 1999 1998 1999 1998
-------------------------------------------------------------------------
Interest income
Loans $2,631 $2,808 $2,469 $5,439 $4,813
Securities 457 441 448 898 866
Deposits with banks 231 287 253 518 497
--------------------------------------------
3,319 3,536 3,170 6,855 6,176
--------------------------------------------
--------------------------------------------
Interest expense
Deposits 1,787 1,994 1,734 3,781 3,424
Subordinated
debentures 75 76 84 151 166
Other 295 284 270 579 479
--------------------------------------------
2,157 2,354 2,088 4,511 4,069
--------------------------------------------
--------------------------------------------
Net interest
income 1,162 1,182 1,082 2,344 2,107
Provision for
credit losses 109 259 224 368 348
--------------------------------------------
Net interest
income after
provision for
credit losses 1,053 923 858 1,976 1,759
--------------------------------------------
--------------------------------------------
Other income
Deposit and
payment services 146 154 152 300 297
Investment
management
and trust 83 80 76 163 148
Credit fees 128 125 114 253 217
Investment
banking 246 237 273 483 469
Net gain on
investment
securities 37 115 106 152 183
Other 110 96 77 206 141
--------------------------------------------
750 807 798 1,557 1,455
--------------------------------------------
--------------------------------------------
Net interest and
other income 1,803 1,730 1,656 3,533 3,214
--------------------------------------------
--------------------------------------------
Non-interest expenses
Salaries 576 556 567 1,132 1,081
Pension contributions
and other staff
benefits 83 78 80 161 148
Premises and
equipment, including
depreciation 261 251 232 512 454
Other 268 251 266 519 487
--------------------------------------------
1,188 1,136 1,145 2,324 2,170
--------------------------------------------
--------------------------------------------
Income before
the undernoted: 615 594 511 1,209 1,044
Provision for
income taxes 218 215 158 433 351
Non-controlling
interest in net
income of
subsidiaries 13 11 7 24 16
--------------------------------------------
Net income $384 $368 $346 $752 $677
--------------------------------------------
--------------------------------------------
Preferred
dividends paid $27 $27 $23 $54 $46
--------------------------------------------
Net income
available to
common shareholders $357 $341 $323 $698 $631
---------------------------------------------------------------
Certain comparative amounts in these financial statements have been
reclassified to conform with current period presentation.
Consolidated Balance Sheet Highlights Scotiabank
------------------------------------------------------------------------
------------------------------------------------------------------------
As at
------------------------------------------------------------------------
(Unaudited) April 30 January 31 April 30
($ millions) 1999 1999 1998
------------------------------------------------------------------------
------------------------------------------------------------------------
Cash resources $17,445 $20,745 $18,815
Securities 32,149 30,899 29,244
Assets purchased
under resale agreements 12,606 11,140 12,322
Loans 131,300 140,246 127,061
Other assets 27,976 29,467 24,487
---------------------------------------
Total assets $221,476 $232,497 $211,929
---------------------------------------
---------------------------------------
Deposits - Personal $64,338 $63,609 $61,281
- Business and
governments 63,663 67,275 61,758
- Banks 24,582 34,314 26,207
---------------------------------------
Total deposits 152,583 165,198 149,246
Other liabilities 52,705 51,067 47,058
Subordinated debentures 5,037 5,236 5,773
Equity - Preferred 1,775 1,775 1,475
- Common 9,376 9,221 8,377
---------------------------------------
Total liabilities
and equity $221,476 $232,497 $211,929
---------------------------------------
---------------------------------------
-----------------------------------------------------------------
Components of Net Income and Average Assets Scotiabank
------------------------------------------------------------------------
------------------------------------------------------------------------
For the three months For the six months
ended ended
------------------------------------------------------------------------
(Unaudited) April January April April April
($ millions) 30 31 30 30 30
1999 1999 1998 1999 1998
------------------------------------------------------------------------
------------------------------------------------------------------------
Net Income
By business
line:
Canadian retail
and commercial
banking $147 $161 $145 $308 $305
Corporate
banking 142 197 92 339 192
Investment
banking 90 88 89 178 154
International
banking 82 53 67 135 104
Other (77) (131) (47) (208) (78)
-----------------------------------------------------
$384 $368 $346 $752 $677
-----------------------------------------------------
-----------------------------------------------------
By geography:
Canada $241 $271 $217 $512 $440
United States 102 128 80 230 150
International 118 100 96 218 165
Other (77) (131) (47) (208) (78)
----------------------------------------------------
$384 $368 $346 $752 $677
----------------------------------------------------
----------------------------------------------------
Average Assets
By business line:
Canadian retail
and commercial
banking $78,694 $80,454 $77,737 $79,591 $76,860
Corporate banking 45,723 46,898 36,659 46,323 36,062
Investment
banking 69,992 72,394 63,710 71,213 62,627
International
banking 27,412 27,244 22,790 27,325 21,618
Other 8,639 9,322 9,933 9,044 8,480
-----------------------------------------------------
$230,460 $236,312 $210,829 $233,496 $205,647
-----------------------------------------------------
-----------------------------------------------------
By geography:
Canada $128,487 $130,594 $124,140 $129,561 $123,607
United States 39,149 39,499 29,664 39,329 28,003
International 54,185 56,897 47,092 55,562 45,557
Other 8,639 9,322 9,933 9,044 8,480
-----------------------------------------------------
$230,460 $236,312 $210,829 $233,496 $205,647
-----------------------------------------------------
-----------------------------------------------------
-----------------------------------------------------------------------
Capital and Common Share Information Scotiabank
-----------------------------------------------------------------------
-----------------------------------------------------------------------
As at
-----------------------------------------------------------------------
April 30 January 31 April 30
(Unaudited) 1999 1999 1998
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Capital ratios
Tier 1 7.8% 7.2% 6.8%
Total 11.2% 10.6% 10.3%
Common shares outstanding
(millions) 493.3 492.8 491.0
Book value per share $19.01 $18.71 $17.06
Market value per share $34.65 $32.50 $39.25
-----------------------------------------------------------------------
For the three months ended
-----------------------------------------------------------------------
April 30 January 31 April 30
(Unaudited) 1999 1999 1998
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Common dividends paid
Total (millions) $103.5 $103.4 $98.1
Per share $0.21 $0.21 $0.20
-----------------------------------------------------------------------
Contact: Catherine Hudon, Senior Public Affairs Consultant, Tel: 00 1 (416)
866-3703 or Shelley Jourard, Senior Manager, Public Affairs, 00 1 (416)
866-6204/ (BNS.)
END
QRSPBUPGABGBGMQ
1 Year Bank Nova Scot Chart |
1 Month Bank Nova Scot Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
